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Bank of Japan Deputy Governor Masayoshi Amamiya said Wednesday that the BOJ must persistently continue to conduct powerful monetary easing it takes time to hit the 2% price target.

"It is likely to take time to achieve the price stability target of 2%. While the inflation rate has risen clearly of late in the United States and other countries, it has been sluggish in Japan. Given this, it is necessary for the BOJ to persistently continue to conduct powerful monetary easing with a view to achieving the price stability target," Amamiya told business leaders in Niigata City via an online conference.

Amamiya warned, "Firms' financial positions have remained weak. Since it is expected to take some time for the impact of COVID-19 to subside, they are likely to remain under stress."

As for the new measure to address climate change issues, Amamiya said, "Central banks' monetary policies essentially target the overall economy and should be conducted while avoiding such involvement as much as possible."

"From these perspectives, with the new fund-provisioning measure, the Bank decided to take the approach of providing funds to financial institutions against investment or loans they make to address climate change based on their own decisions," he said,

Amamiya continued, "On this basis, financial institutions that wish to be provided with funds will be asked to disclose a certain level of information on their efforts to address climate change so that discipline can be exercised."